There are economies of scale. There’s the fact that the company can probably service the battery better between swaps extending its life. And finally, there’s t

There are economies of scale. There’s the fact that the company can probably service the battery better between swaps extending its life. And finally, there’s the benefit of a minimum level of battery performance even after the warranty expires. However, none of this is the most interesting part for battery tech. Why this might be a much financially better option for customers is if battery tech costs keep reducing rapidly. So instead of paying the cost of 100kw of battery tech in 2023, you will pay something like an average value of the battery tech cost from 2023 to 2027 (and if the industry is growing, like EVs are, it will be a weighted average where the cheaper newer batteries would have higher weight since they would be a larger proportion of the overall stock since more cars will be made in 2027 than 2023). Basically with the condition that battery costs keep dropping, this could be a fantastic deal for customers since they don’t need to buy the batteries at the most expensive price they will ever be going forward.